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| McKillop: no RBS pension 'ruse' | McKillop: no RBS pension 'ruse' |
| (20 minutes later) | |
| Former RBS chairman Sir Tom McKillop has said there was no "elaborate ruse" to reward former chief executive Sir Fred Goodwin. | Former RBS chairman Sir Tom McKillop has said there was no "elaborate ruse" to reward former chief executive Sir Fred Goodwin. |
| Sir Fred left "at the request of the company with his full contractual entitlement" because of the need for a "consensual departure", Sir Tom said. | Sir Fred left "at the request of the company with his full contractual entitlement" because of the need for a "consensual departure", Sir Tom said. |
| "Each element of the proposed terms of departure" was discussed with City Minister Lord Myners, he added. | |
| Sir Fred's £703,000 pension arrangement has sparked much public anger. | Sir Fred's £703,000 pension arrangement has sparked much public anger. |
| Sir Tom's comments followed Lord Myners' testimony to the Treasury Select Committee over Sir Fred's pension. | Sir Tom's comments followed Lord Myners' testimony to the Treasury Select Committee over Sir Fred's pension. |
| Lord Myners earlier this month acknowledged that he had known about Sir Fred's pension, but insisted he did not know about any discretion for the board in respect of paying that pension. Lord Myners also said he had not "endorsed" Sir Fred's pension. | Lord Myners earlier this month acknowledged that he had known about Sir Fred's pension, but insisted he did not know about any discretion for the board in respect of paying that pension. Lord Myners also said he had not "endorsed" Sir Fred's pension. |
| I must emphasise that there was no "elaborate ruse" by myself and Mr Scott to give Sir Fred any more than he was contractually entitled to Sir Tom McKillop Sir Fred's fantastic expanding pension | I must emphasise that there was no "elaborate ruse" by myself and Mr Scott to give Sir Fred any more than he was contractually entitled to Sir Tom McKillop Sir Fred's fantastic expanding pension |
| But a member of that committee, the Conservative MP Michael Fallon, said: "If he's misled parliament, and I think he has, then he should resign." | |
| Lord Myners, Mr Fallon insisted, "told our committee he didn't get any information about the pension, he didn't ask for information, and he wasn't told about it". | Lord Myners, Mr Fallon insisted, "told our committee he didn't get any information about the pension, he didn't ask for information, and he wasn't told about it". |
| "On the contrary, Tom McKillop makes it clear that Lord Myners was told each detail of the pension, the undiscounted effect - that's the mechanism by which it was doubled because he was taking early retirement - and the total." | "On the contrary, Tom McKillop makes it clear that Lord Myners was told each detail of the pension, the undiscounted effect - that's the mechanism by which it was doubled because he was taking early retirement - and the total." |
| 'Full disclosure' | 'Full disclosure' |
| Sir Tom said in his letter that he and Bob Scott, the senior independent director, made a "full disclosure" of Sir Fred's compensation to Lord Myners. | |
| "Mr Scott is certain that he discussed each element of the proposed terms of departure set out in the remuneration paper, including the pension," Sir Tom said. | "Mr Scott is certain that he discussed each element of the proposed terms of departure set out in the remuneration paper, including the pension," Sir Tom said. |
| "Mr Scott also gave Lord Myners... a range of £15m to £20m as being Mr Scott's best estimate of what the pension liability might be." | "Mr Scott also gave Lord Myners... a range of £15m to £20m as being Mr Scott's best estimate of what the pension liability might be." |
| Lord Myners earlier this month told the Treasury Select Committee that he had not been privy to "the thinking of the remuneration committee or members of that committee of RBS". | Lord Myners earlier this month told the Treasury Select Committee that he had not been privy to "the thinking of the remuneration committee or members of that committee of RBS". |
| In his letter, Sir Tom said: "I must emphasise that there was no 'elaborate ruse' by myself and Mr Scott to give Sir Fred any more than he was contractually entitled to and that we and, I believe, all the directors acted in what we judged to be the best interests of the shareholders, including the government." | |
| Sir Fred took early retirement from RBS last year after the bank needed a £20bn bailout from the government. The payout has been widely condemned. | Sir Fred took early retirement from RBS last year after the bank needed a £20bn bailout from the government. The payout has been widely condemned. |
| Sir Fred's Edinburgh home was attacked by vandals last week. | Sir Fred's Edinburgh home was attacked by vandals last week. |